Crossmark Global Investments CEO and CIO Bob Doll unpacks the state of the U.S. economy on Maria Bartiromos Wall Street.
The U.S. economy added jobs at a slower pace than expected in January, as the Federal Reserve remains in a holding pattern for interest rate cuts as it evaluates the labor market and inflation data.
The Labor Department on Friday reported that employers added 143,000 jobs in January, below the estimate from LSEG economists.
The unemployment rate came in at 4%, coming in lower than economists’ expectations.
The number of jobs added in the prior two months were both revised, with job creation in November revised up by 49,000 from a gain of 212,000 to 261,000; while December was revised up by 51,000 from a gain of 256,000 to 307,000. Taken together, 100,000 more jobs were created in those two months than previously reported.
Private sector payrolls added 111,000 jobs in January, below the 141,000 estimated by LSEG economists.
Wage growth was stronger than expected, with average earnings growing by 0.5% from the prior month and 4.1% from a year ago. Those both top the LSEG economists’ estimates of 0.3% growth on a monthly basis and 3.8% year over year.
The manufacturing sector saw employment rise by a modest 3,000 jobs in January, which came in above economists’ expectations that the sector would shed 2,000 jobs for the month.
Health care added 44,000 jobs in January, driven by hiring at hospitals (+14,000), nursing and residential care facilities (+13,000) and home healthcare services (+11,000). The sector was below its 2024 average of 57,000 jobs per month.
Retail added 34,000 jobs last month with notable gains at general merchandise retailers (+31,000) and furniture and home furnishings retailers (+5,000), while electronics and appliance retailers saw a decline (-7,000). Overall, the retail sector had little net employment change in 2024.
Government added 32,000 jobs in January – a figure that was close to in line with its average monthly gain of 38,000 in 2024.
Social assistance added 22,000 jobs, led by individual and family services (+20,000) with gains also occurring in community food and housing, emergency and other relief services (+4,000). The sector grew by an average of 20,000 jobs a month last year.
This is a developing story. Please check back for updates.
